Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279182 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10433
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
The positive role of transformational leadership on productivity and mental well-being has long been established. Transformational leadership behavior may be particularly suited to navigate times of crisis which are characterized by high levels of complexity and uncertainty. We exploit quasi-random assignment of employees to managers and study the role of frontline managers' leadership styles on employees' performance, work style, and mental well-being in times of crisis. Using longitudinal administrative data and panel survey data from before and during the Covid-19 pandemic, we find that frontline managers who were perceived as having a more transformational leadership style before the onset of the pandemic, led employees to better performance and mental well-being during the pandemic.
Subjects: 
leadership
frontline managers
labor-management relations
organizational behavior
crisis
JEL: 
M54
M12
J53
Document Type: 
Working Paper
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